Crandon mine owner flip flops again

Minimum qualifications for mine applicants needed

The new owner of the proposed Crandon mine has reversed himself again, asking the Department of Natural Resources (DNR) to continue its review of its mining permit application.

"Gordon R. Connor's flip-flops and chaotic actions underscore the need for DNR rules that establish minimum qualifications for mining permit applicants. Fortunately, the department is about to start that rulemaking process," said Dave Blouin of the Sierra Club. "The lack of a qualified applicant for this major environmental threat is appalling and a major step backwards for the Wolf River and Wisconsin's environment."

On May 29, 2003, Nicolet Minerals Company (NMC) requested a "stay" in the permitting process and asked that staff and contractors for the DNR and the U.S. Army Corps of Engineers halt work on the application for the proposed Crandon mine. The agencies, however, showed no signs of stopping their reviews. Now, NMC Project Manager Gordon R. Conner has told the DNR to continue working.

A letter dated August 26, 2003 from NMC to the DNR withdrawing its request to "stay" the mine permitting process was released by the Sierra Club and Clean Wisconsin today (attached).

The Sierra Club, Clean Wisconsin and other organizations had opposed granting of a "stay" or pause in the permitting process, citing the likely loss of consultants and the economic hardship to other parties involved in analyzing NMC's mine permit applications, including state and federal regulators.

"It's clear that state and federal regulators did not agree to NMC's request," said Dave Blouin, Sierra Club. "The only realistic way to pause a permitting process would be for the regulators to consider the permit applications 'withdrawn' by the mining company and to halt work entirely. To allow a mining company to stop and start the permitting process at will would have thrown the process, and staff and consultants into chaos and would have set a terrible precedent for other businesses."
"If the company is trying to move this flawed mine proposal forward, they should realize that we will work harder than ever for legislation that will protect our clean water and special places from unsafe mining. Banning cyanide, making mining companies follow the same waste rules as other industries and creating rules for mining operator qualifications will go a long way to protect our natural resources." said Claire Schmidt, Clean Wisconsin. "This schizophrenic indecision undermines the company's business credibility. Is this company reliable enough to be a steward of our clean water?"

The DNR published a notice of intent to begin rulemaking on minimum qualifications for metallic mining and prospecting permit applicants and operators in the August 15, 2003 Administrative Register. The proposed rule will have direct application to the proposed Crandon mine project and will require that the state Metallic Mining Council be re-formed. Mining rules must be developed in consultation with the Council, a nine-member advisory body whose members are appointed by the DNR Secretary.

-end-
(Note that this is a scanned version of the original letter from Gordon R. Connor to DNR. Any errors are unintentional. A pdf of the original letter is available)

This letter is to make clear that Nicolet Minerals Company ("NMC") requests continued processing of its Mining permit Application that is on file with the Department. In this regard, the Department should continue processing all pending applications and approvals for the Crandon Mine Project. DNR should also continue working on the limited remaining items necessary to prepare the Draft Environmental Impact Statement ("DEIS").

As you are aware, NMC requested a stay of the approval process in a letter dated May 29, 2003. However, despite that request the DNR and the United States Army Corps of Engineers ("USACE") continued with the permitting process.

Likewise, NMC also continued actively working on the application since May 29th. For example, NMC continued talking with the DNR and its consultant, Fred Frackebusch, concerning technical issues associated with the application. On July 28, 2003, NMC filed a response to the DNR's May 21, 2003 letter on paste backfill matters. NMC also continued working on questions concerning the December 1998 Wisconsin Stats. � 293.50 Compliance Demonstration and anticipates filing a supplement in the near future.

Given recent discussions with the DNR addressing the issues that initially triggered our request for a stay, we are now withdrawing our request, notwithstanding and recognizing the fact that both the DNR and the Corps continued with the permitting process. We look forward to working with the WDNR and USACE on this matter. Please give me a call if you have any questions.

DNR to set qualifications for mining in Wisconsin

State mining regulators have told opponents of a proposed zinc and
copper mine in northern Wisconsin there is a need to set explicit qualifications
for companies trying to obtain mining permits. The Department of Natural
Resources commented in response to an antimining coalition's threatened
lawsuit against the agency over its enforcement of state mining laws.

In a letter to coalition attorney Glenn Stoddard released Thursday,
Elizabeth Kluesner, executive assistant to DNR Secretary Scott Hassett,
said the agency will write new regulations spelling out minimum qualifications
to mine in Wisconsin.

"The recent purchase of Nicolet Minerals Co. by Northern Wisconsin
Resource Group LLC does suggest that there is a need to establish more
explicit qualifications for mining permit applicants," Kluesner wrote.

Until now, applicants have always been large companies with significant
expertise in mining, she said. Northern Wisconsin Resource Group, a
subsidiary of Nicolet Hardwood Corp., of Laona, bought Nicolet Minerals
and its rights to 4,850 acres, including the mine site, from BHP Billiton
of Melbourne, Australia, in April.

The Connor family, which owns Nicolet Hardwood Corp., has been involved
in the logging and lumber business in northern Wisconsin for decades
but has never owned a hard-rock mine.

The DNR's decision was good news, Stoddard said Thursday. "The DNR
is obviously worried if the new owners of the proposed Crandon project
are qualified to operate the mine," he said.

Nicolet Minerals project manager Gordon Connor Jr. was gone from his
office in Crandon late Thursday and did not return a telephone message
left by The Associated Press for comment.

Nicolet Minerals has been seeking the needed state, federal and local
permits to mine 55 million tons of ore from a site just south of Crandon
since 1994.

In late May, its new owners asked the DNR to put its application for
mining permits on hold while it completes its own review of the project.

Connor has said his company was seeking a mining company to join the
project.

Stoddard said Thursday that even minimum qualifications regarding
mining experience and management would likely disqualify the new owners
from getting a mining permit.

Over the years, major mining companies have tried to develop the mine
and all have "bailed out," Stoddard said. "We have a new owner way over
its head and cannot possibly develop and operate a project of this nature
in a responsible manner based on their experience," he said.

The coalition filed a 30-day notice with the DNR earlier this month
as the first step toward filing a civil lawsuit. Among the environmental
groups listed as plaintiffs in the complaint against the DNR were the
Mining Impact Coalition of Wisconsin, Protect Our Wolf River, Sierra
Club-John Muir Chapter and the Green Bay and Wolf River chapters of
Trout Unlimited.

NOTICE: In accordance with Title 17 U.S.C. Section 107, this material
is distributed without profit to those who have expressed a prior interest
in receiving this information for research and educational purposes.

Editorial: Crandon Mine still problematic

The site of the proposed Crandon Mine in northeastern Wisconsin has
new owners, but apparently the old environmental questions that have
made opening a mine there problematic are still unanswered.

The Northern Wisconsin Resource Group, a subsidiary of Nicolet Hardwood
Corp. of Laona, is the fourth company since 1994 to own the site and
to propose mining 55 million tons of zinc and copper ore. And like the
old owners, the Northern Resource Group, it faces the challenge of demonstrating
to the state Department of Natural Resources that it can conduct the
mining without harm to the environment.

Specifically, the mine proposals have called for creating the state's
largest waste dump composed of potentially toxic sulfide mine tailings
near the headwaters of the pristine Wolf River, inland lakes and the
wild rice beds of the Mole Lake Chippewa tribe. Adding to the concern
is the fact that most, if not all, sulfide mines elsewhere in the world
have polluted nearby water resources in the past.

Now the new owner is upset with the DNR for not releasing a draft
of its final recommendations on the mine.

But by doing so the DNR would be shirking its responsibilities. The
new owners in late May asked the DNR to put its application for a mining
permit on hold. That stymied the regulatory process. To determine the
safety of the mine, the department needs to know the full details of
any mining proposal and test any new technologies.

Still at issue is whether backfilling the mine would adequately protect
nearby groundwater from acid leakage following the mine's closure after
about 25 years of operation.

To ensure the safety of the mine, the state Legislature passed a mining
moratorium requiring the mine owners to show examples of metallic-sulfide
mines that had been operated elsewhere without polluting nearby waters
during mining or after closure of the mines.

Many environmentalists believe the past owners never found adequate
examples.

The new owners may believe they can operate the mine and still protect
the environment, but until they show actual examples of how this has
worked elsewhere, we do not believe a mining permit should be under
consideration.

The headwaters of the Wolf River, a prime recreation and water resource,
is not a good place to experiment with new, unproven mining technologies.

The new owners of the proposed zinc and copper mine near Crandon said
in an interview with the Wisconsin State Journal last week they are
intent on developing the project and criticized the Department of Natural
Resources for not issuing a draft environmental impact statement after
years of study.

In fact, the owners said, their recent request for a pause in the
permitting process was intended mostly to find a way to bring the studies
to a close and get the draft environmental study published.

"The point is," said Gordon R. Connor, project manager and one of
the new owners, "we feel that after nine years of intensive study, the
DNR has ample information to issue the EIS."

Connor accused the DNR of "a disturbing pattern of foot dragging"
in completing the environmental study.

Officials with the DNR responded by saying there remain several minor
but important technical issues that need to be resolved before the environmental
study is issued.

In addition to pushing the DNR on the draft EIS, the Connors have
threatened to file suit to force the release of a report on the mine
from the now defunct Scientific Advisory Council on Metallic Mining.
Gov. Jim Doyle disbanded the group, which spent years studying the mining
proposal, just as it was finishing its work.

The hard rock mine first proposed and pursued 25 years ago by Exxon,
has passed through several owners and has remained controversial because
of its location at the headwaters of the scenic Wolf River and near
the rice beds on the Mole Lake Indian reservation.

The rights to the project were recently purchased from BHP Billiton,
one of the world's largest mining companies, by Nicolet Hardwood Corp.,
owned by Gordon Phelps Connor. His son, Gordon R. Connor, now serves
as project manager for Nicolet Minerals Comp., which is the company
seeking permits from the state to build the mine.

The timber company came under fire from environmentalists as not having
the expertise to build and operate the mine, and several groups have
even filed, a suit asking the DNR to evaluate the company's qualifications.

But Gordon R. Connor said the timber company, in business in Wisconsin
since 1872, is in a better position to run the mine than a foreign corporation.

"We think we have a very sound understanding of the project," said
Connor. "And we think having local control and by being people who live
up there, that is a major asset."

Still, the company is off to a rocky start, enduring criticism not
only from environmentalists but also from tribal governments for offering
to sell sacred lands to the Mole Lake Chippewa. The mine site includes
a sacred site called Spirit Hill, where warriors killed years ago in
a battle between the Sioux and the Chippewa over Rice Lake are buried.

Last week, the Connors offered to sell the hill to the band, a move
that offended tribal members. Connors said during the interview last
week that the company has not heard back from the band.

"I think they're concerned about giving money to the mining company."
Connors said. "The offer is still out there."

But of most concern to the Connors right now is the EIS and a testy
initial relationship with the DNR, which will decide whether to issue
permits that would allow the project to move forward.

Gordon R. Connor said that by issuing a draft EIS, the DNR would allow
the company to better evaluate the business potential of the project.
The company, he said, is still considering finding a partner with mining
expertise or contracting with a company to build and operate the mine.

"I think it is a question of whether you keep putting money down a
black hole," said Gordon P. Connor. "The DEIS will tell us whether we
can put together a feasible business plan."

Officials with the DNR, however, said that by asking for a pause in
the permitting process, the Connors have actually set back the timetable
for issuing the draft of the environmental impact statement.

"We're trying to wind things down," said Elizabeth Kluesner, an executive
assistant with the DNR who is working on the project, "but franky we
were in better position a couple of months ago. There is much less
certainty now."

Still at issue, according to Chris Carlson, a hydrogeologist with
the DNR, are technical questions about whether the proposed backfill
of the mine once it is closed will adequately protect nearby groundwater
from pollution.

Oddly enough, both the DNR and the Connors characterize the unresolved
issues as "minor." The difference is, the Connors would like to see
a draft environmental impact statement issued prior to the resolution
of those issues and the DNR says it can't do that

Gordon R. Connor said there is opportunity after the draft EIS is
issued to resolve such issues. Kluesner said that is not so.

"We're not issuing the draft environmental impact statement until
we feel we have all the details nailed down, minor or otherwise," said
Kluesner. "That's now how the regulatory process works."

CRANDON (AP) -- A local government that has tried to block a zinc
and copper mine claims Nicolet Minerals Co. has violated an agreement
to the point that the 1996 deal can be reopened.

The Town of Nashville, in a June 27 letter, said the mining company
had 30 days to �cure the breach� in the local agreement or provide a
written response.

Otherwise, the town would go to court to �bring an action for breach
of the entire local agreement.�

The town�s move indicates it would like to renegotiate the local agreement
in �very significant ways,� said Glenn Stoddard, an attorney for the
town.

Gordon Connor Jr., project manager for Nicolet Minerals, on Tuesday
called the town�s allegations �frivolous� and a waste of taxpayers�
money.

�We have not done anything to certainly not cooperate with the Town
of Nashville. We want to cooperate with all interested and affected
parties of the mining project,� he said.

The agreement is one of four the mining company has with governments
affected by the proposed mine.

Chuck Sleeter, chairman of the Town of Nashville Board, said the town
seeks a new mining agreement that gives the town more zoning protections.

The local agreement has been in court before.

After opponents of the mine were elected to the town board, the board
rescinded the agreement in 1998. But the move was overturned by a judge.

In January 2002, the 3rd District Court of Appeals upheld the judge,
ruling the local agreement conformed with state law and resolved all
zoning issues needed to allow the mine�s development.

The town�s resolution to rescind the local agreement was invalid,
the three-judge panel said.

Nicolet Minerals has been seeking the needed state, federal and local
permits to mine 55 million tons of ore from a site just south of Crandon
since 1994.

Northern Wisconsin Resource Group, a subsidiary of Nicolet Hardwood
Corp., of Laona, which is owned by the Connor family, bought Nicolet
Minerals and its rights to 4,850 acres, including the mine site, from
BHP Billiton of Melbourne, Australia, in April.

Crandon mine site owners offer Spirit Hill to tribes

Crandon-- The owners of the site of a proposed zinc and copper mine
have offered to sell a small but important piece of the property to
two Indian tribes bitterly opposed to the project.

Gordon R. Connor said he has contacted both the Mole Lake Chippewa
and Forest County Potawatomi tribes about his intention to sell Spirit
Hill.

The hill is the grave of more than 500 Chippewa and Sioux warriors
who died in an 1806 battle for control of the wild rice beds on nearby
Rice Lake.

"We want to be sensitive to their spiritual needs," said Connor, mine
project manager for the Connor family of Laona, the new owner of the
Crandon mine property. "We'll give them right of first refusal, but
we're in the active process of selling Spirit Hill, and when it's done
it's no longer our concern."

The proposed mine has drawn fierce opposition from the tribes and
environmentalists who, among other things, claim that acidic mine runoff
and cyanide used in ore extraction would jeopardize the pristine Wolf
River.

The mine permit request now under review by the state Department of
Natural Resources includes no plans to mine the hill, Connor said.

Connor declined to discuss asking price or how much of the 5,000-acre
mine property he intended to sell but said that Spirit Hill occupies
320 acres and that he views sale terms as a "very flexible" thing.

"It's certainly not going to go for less than market value," Connor
said. "We paid quite a bit for Spirit Hill, and we'd like to recoup
that cost."

A conversation with attorneys for the Potawatomis and phone messages
left for Chippewa leaders several weeks ago drew no response, Connor
said.

Spirit Hill borders the southeastern tip of the Chippewa's reservation.
A message left for Tribal Chairwoman Sandra Rachal was returned by Glenn
Reynolds, attorney for the tribe. Reynolds said he wasn't aware of the
proposed sale and declined to comment.

Potawatomi spokesman Bill McClenahan declined to comment on the offer
but said the tribe's leaders are interested in discussing the idea.
"We don't have any concrete proposal in front of us," McClenahan said.

Connor is disappointed his overtures had drawn no response, adding
that Spirit Hill will be sold regardless of the tribes' participation.

"We're going to sell it regardless because it"s not in the mining
zone," he said.

June 6, 2003

Editorial: A mine without a future

Milwaukee Journal Sentinel
June 6, 2003

State Rep. Spencer Black (D-Madison) may have hit the nail on the
head when he suggested the other day that Nicolet Minerals' proposal
for a mine in Crandon is in trouble and that "there will not be a mine
at the headwaters of the Wolf River any time soon." Of course, he might
have been just whistling Dixie, too. But the company's request that
the state halt its review of the proposed mine certainly doesn't seem
to bode well for the mine's future.

Which would be a good thing. As we've said, the proposed zinc and
copper mine probably would do more harm than good for the residents
of northern Wisconsin. While the mine would provide some jobs, it also
could do irreparable harm to the environment and the state's tourism
industry. And our guess is that tourism is a better economic bet for
northern Wisconsin than is mining.

So Monday's announcement by Gordon Connor, a North Woods businessman
who bought the mine property in April, should be welcome news for most
state residents. Connor expressed frustration with the state's process
for issuing permits and said the company will have to do a "review of
where we are."

Connor may have a point when he complains that the state's process
takes too long. Other businesspeople have made similar complaints, as
a recent study by Wisconsin Manufacturers & Commerce reported. But,
as Black asked, if the state review were going well - and if the company
had the financing necessary to develop the mine - would Connor be asking
the state to stop the review?

In any case, Connor shouldn't feel too bad. He's in the same situation
as all the previous owners of the site, going back to when the mine
was proposed in the 1980s.

And maybe that's because the mine has been a bad idea from Day 1.

Potawatomi Reaction to the New Crandon Mine Owner�s Request
To Put Government Permit Reviews on Hold

By Forest County Potawatomi Community Attorney General
Jeff Crawford

The new owner of the proposed Crandon mine has quickly discovered
what opponents have known for many years. It is a project with immense
financial and environmental risks � risks that are not worth any perceived
benefits. It is time for a permanent end to the project.

The new owner has asked the Wisconsin Department of Natural Resources
(DNR) and the U.S. Army Corps of Engineers to put an indefinite hold
on the processing of the mining permit application. The new owner also
informed the agencies that, if the hold is approved, it intends to �Not
respond to any outstanding requests for information or concerns raised
on the application (e.g. the mining moratorium and paste backfill submittals).�

The applicant�s request that it be granted authority to stop and start
both the Army Corps and DNR�s review processes is ill-timed, ill-advised
and unfair to everyone involved. Both the DNR and the Army Corps have
consultants, staff members and managers who are in the middle of their
reviews. The Potawatomi and other interested parties have also hired
consultants who are engaged in the review process.

This work cannot be stopped and started like a machine. Permit review
instead requires the application of technical expertise to data (much
of which is time sensitive), the exercise of professional judgment,
and communication with the applicant and interested parties. Such processes
cannot simply be suspended until further notice � indeed, to do so would
jeopardize the integrity of the ongoing scientific and engineering reviews,
as well as increase costs.

We also find it ironic that six months ago the permit applicant successfully
lobbied the U.S. Army Corps of Engineers to dramatically speed up its
review process. The speed-up caused major hardship for the Potawatomi
and other cooperating agencies. The Potawatomi and others have hired
numerous experts and have filed hundreds of pages of technical comments
to more than a dozen technical documents issued by the federal government
during this speed-up. Now the applicant has changed its mind and made
the unprecedented request that it be permitted to stop the permitting
process until it wants to start it again.

Northern Wisconsin Resources Group (NWRG) � which is apparently owned
by Gordon Connor and his family � purchased Nicolet Minerals Company
two months ago. Now NWRG says it needs time to review Nicolet�s permit
application. But the Connor family, to the best of our knowledge, has
held Crandon mineral rights for many years. And we find it hard to believe
NWRG would have purchased the project without the usual careful and
thorough review needed for a multi-million dollar business project.
The details of the project certainly should have been well-known before
any purchase.

NWRG is now the fourth owner of the proposed Crandon mine in five
years. It has admitted it lacks experience in mine operations and has
searched � with no apparent success � for a partner who does have mining
credentials. In the meantime, it has put portions of the Nicolet Minerals
property up for sale and has apparently informed members of the Forest
County Board that it does not intend to exercise its option to purchase
mine site property owned by the county. This apparently would require
Forest County to refund hundreds of thousands of dollars paid to the
county by Nicolet on those options. The new owner has also made public
statements indicating an intention to alter the permit application while
telling government agencies it does not intend to make changes.

All of these developments are troubling, given that the mine operator
will be responsible for safe-guarding our environment � including groundwater,
wild rice and the Wolf River � from the dangers of pollution that will
threaten the area for tens of thousands of years.

The financial and environmental risks of the proposed Crandon mine
clearly argue for a permanent end to this project.

The owner of the proposed Crandon mine in northern Wisconsin wants
to put a government review of the controversial project on hold.

Gordon P. Connor, a North Woods businessman who bought the mine property
in April, expressed frustration Monday with how the state Department
of Natural Resources was handling his application for an underground
zinc and copper mine.

"We thought that we had a plan and an approach," Connor said. "They
(the DNR) have complicated it, so we are going to have to do a review
of where we are."

But Connor emphasized that he has no plans to back away from the project,
and he noted that a mine near Ladysmith also was delayed for a time
before work began.

"This is a very important deposit, and it will be developed," Connor
said. "Someday this will happen. But we are not under any time constraints
to get it going."

First proposed in 1994, the Crandon mine in Forest County has been
a lighting rod for environmentalists, who say that plans to extract
55 million tons of ore near the headwaters of the Wolf River will damage
the environment and harm water quality downstream.

But supporters say it would supply badly needed jobs in northern Wisconsin.
After buying the mine property, Connor said it would employ 200 people
and provide mineral, income and forestry property tax revenue of more
than $5 million annually.

Connor formed Northern Wisconsin Resource Group to buy the proposed
mine from a unit of BHP Billiton of Melbourne, Australia. Connor's company
is continuing to look for other investors as partners.

BHP Billiton has retained no equity stake or mineral royalties to
the property.

DNR raises questions

During an interview Monday, Connor said he asked the DNR and the U.S.
Army Corps of Engineers to stop their work on an environmental impact
statement after he received a letter May 21 in which the DNR expressed
safety concerns about how the company would re-fill cavities after extracting
the ore.

Connor's company, which goes by the name of the former owners, Nicolet
Minerals, plans to use a combination of cement and waste rock to re-fill
the underground mine as work progresses.

"Should the backfill not have adequate compressive strength, there
could be structural stability problems affecting mine operation and
safety," the DNR wrote.

The letter, and request for other detailed information, "came out
of the blue," Connor said. "The regulatory process seems out of whack.

"When you have a process that has been going on for nine years, and
they want to chase things that are probably irrelevant, why spend the
money?" he asked.

He estimated that his newly formed company is spending $100,000 a
month for bills from consultants and the DNR. As part of the environmental
review process, the DNR's work is billed to the applicant.

DNR is surprised

The DNR said Monday that Connor's request to put the project on hold
was unexpected.

"This was a surprise to me," said Elizabeth Kluesner, executive assistant
to DNR Secretary Scott Hassett. "Until then, we had received a clear
indication that they wanted to continue with the regulatory process."

Kluesner said about 30 consultants are working on the project. She
said the agency was trying to determine how to put all of the work on
hold.

Environmentalists were pleased by the delay.

Rep. Spencer Black (D-Madison) - an opponent of the mine - said the
decision to halt regulatory work would be a major blow for the mine.

"This is something that you cannot start and stop on a dime," Black
said. "There will not be a mine at the headwaters of the Wolf River
anytime soon.

"The Connors might try to put a good face on this. But if the review
process was going well for them, they wouldn't have asked for a halt."

June 3, 2003

Pull the Plug on the Crandon mine proposal Regulators
Should Refuse Request to "Pause" Permitting Work

News from the Sierra Club
June 3, 2003
Contact: Dave Blouin, Sierra Club - John Muir Chapter, 608-233-8455

The Sierra Club believes that State and Federal regulators should
reject Northern Wisconsin Resource Group's (NWRG) outrageous request
to "pause" the proposed Crandon mine permitting activities while the
mining company performs an internal review of the project. The Sierra
Club strongly urges State and federal regulators and decision-makers
to reject this unprecedented request, and permanently halt processing
of the current incomplete mine application.

"NWRG cannot simply turn off a permitting effort and then restart
it at its convenience because it failed to do its homework before buying
the mining company," said Dave Blouin, Sierra Club spokesperson. "State
and federal regulators have no obligation to bend over backward to accommodate
this company's incomplete and failed mining application, and should
reject this request."

Since purchasing the mining company less than two months ago, NWRG
has repeatedly demonstrated that it is unqualified to operate a mine
in Wisconsin. Examples include:

? NWRG stated it will not respond at this time to outstanding requests
for information raised on the mining application. WDNR has requested
information such as the regulatory compliance history of the applicant
and data on the applicant and parent company's financial ability to
conduct mining in a responsible manner. WDNR should not continue work
on an incomplete mine permit application. (see attached text of NWRG's
5/29/03 letter to WDNR and the U.S. Army Corps of Engineers)

? NWRG stated it will not respond at this time to regulator's requests
for additional technical information about the mine proposal needed
to complete Draft Environmental Impact Statements.

? At a May 28 meeting with the Forest County Board of Supervisors
Mining Committee, a representative of NWRG acknowledged that the company
had not yet found a mining company partner for the mine. NWRG's owner
has publicly acknowledged that he is unqualified to operate a mine and
needs a partner. The Forest County Mining Committee was told that the
NWRG had a partner but was "spooked" by recent events and withdrew.
NWRG's inability to attract any mining company as a partner demonstrates
that it should not be allowed to move forward with the application.

? At the same meeting, NWRG told the Forest County Board of Supervisors
Mining Committee that county land under a purchase contract with the
mining company would be returned to the county. If so, Forest County
would be required to repay up to $600,000 to the mining company.

? NWRG's unprecedented request throws the jobs of dozens of regulatory
agency employees, contractors and vendors into limbo. At least 30 people
contractors and state staff are employed in Wisconsin's permit review
alone and the number involved in the Corps of Engineers' review is likely
much higher.

? Without explanation, NWRG has stated it would employ 200 people
if permitted to mine. This is a reduction of more than 50% of the number
of jobs proposed by previous owners and requires scrutiny by regulators.

"The evidence is clear that this 'request' is the desperate act of
a company that does not have the resources or the expertise to operate
a mine. Regulators should reject this request - especially from an applicant
which refuses to give regulators information required of permit applications,"
said Blouin. "Now is the time to end this controversy and permanently
protect the natural and cultural resources of the Wolf River headwaters
area."

Northern Wisconsin Resource Group purchased Nicolet Minerals Company
from BHP Billiton on April 10, 2003. The Wisconsin DNR and U.S. Army
Corps of Engineers are currently reviewing applications to operate the
proposed Crandon mine in Forest County, Wisconsin.

Black Hails Decision To Put Mine on Hold

Today's action by the owners of the Crandon mine to stop regulatory
work on the project is a good news for the environment and for Wisconsin,
according to Representative Spencer Black, author of the state?s mining
moratorium law.

"The mining company's action to stop all consideration of its Crandon
mine application means there will not be a mine at Crandon any time
soon," Black said.

"This is a victory for the citizens of Wisconsin who worked so hard
to pass the mining moratorium law. The mining moratorium law prevents
a sulfide mine like the one at Crandon from opening unless the owners
can show a similar mine has operated and closed without harming the
environment. As today's letter from Nicolet Minerals indicates, the
Crandon mine's owners have been unable to meet that requirement," Black
said.

"Construction of the Crandon mine, which is located at the Wolf River
headwaters, would pose a significant threat to one of our state's most
pristine waterways. That's why today's announcement is good news," Black
said.

Robert Whiting
U.S. Army Corps of Engineers
St. Paul District
190 5th St. E.
St. Paul, MN 55101

Re: Crandon Mine Project - Hold on Further Action

Dear Ms. DeVetter and Mr. Whiting:

On April 10, 2003, Northern Wisconsin Resource Group LLC ("NWRG")
purchased Nicolet Minerals Company from BHP-Billiton. As you know, the
previous owners of the Crandon Mine Project have spent over a decade
working with regulators and interested parties in preparing the necessary
application and analyses for approval of the project. As the new owner
we are reviewing those materials to assess how they fit with NWRG's
long range plans, goals and vision for the project.

With this recent change in ownership and management, it seems an appropriate
time for a pause in the process. This will allow NWRG to complete its
internal review of the project and consult with other parties, as appropriate.
These efforts should provide an economy of resources in the future approval
process for the Wisconsin Department of Natural Resources (WDNR), U.S.
Army Corps of Engineers (USACE) and the applicant.

With this background, NWRG requests that the WDNR and USACE:

1.Stay further processing of all pending applications and approvals
for the Crandon Mine Project.

2.Delay further work on the draft environmental impact statements
until NWRG completes it internal review of the project.

3.Direct all employees, vendors and consultants under WDNR and USACE
control to stay all work on the Crandon Mine Project.

During this stay period, NWRG will:

1.Continue monitoring regional groundwater levels, wetland levels,
and lake levels to aid in the State and Federal environmental impact
process and to establish baseline data.

2.Agree to toll any statutory or regulatory deadlines by which the
WDNR and USACE are required to act on permit applications or requests
for approval.? This tolling shall end upon the applicant requesting
that the WDNR and USACE reinitiate the application/approval process.

3.Not withdraw the permit applications or requests for approval that
were previously filed for the project.? In this regard, NWRG is not
seeking to cease approval of the proposed mining project - just place
that approval process on hold.

4.Hold the tailings testing program in a stable environment by flooding
the cells with deionized water and sealing the cell ports to eliminate
tailings exposure to the atmosphere.

5.Not respond to any outstanding requests for information or concerns
raised on the application (eg. the mining moratorium and paste backfill
submittals).? The applicant will file responses, as appropriate, after
the stay.

We look forward to working with the WDNR and USACE in the future.
In the interim, please do not hesitate to contact me.

Mining appeals only to those who will profit

By Curt Andersen
Green Bay News-Chronicle

The recent purchase of the Crandon Mine property by Northern Wisconsin
lumber baron Gordon Connor Jr. has many people wondering why a lumber
magnate would be interested in mining. You know what they say: Do what
you do best and leave other work to others.

So why would this lumber guy buy the mine property? Many think Connor
is merely a front to hide the ugly multinational megacorporation that
Wisconsinites suspect will stiff us for our precious metals and leave
us with a hole in the ground and a poisoned Wolf River.

Other speculation concerns the opportunity for Connor to get the permit
to mine and then resell the property to the original owners for a tidy
markup. It is uncertain whether Connor has enough money to bribe (they
call it "campaign donations") Republican legislators for several years
with no guarantee of a permit.

To buy the property, Connor borrowed $4.25 million from a Green Bay
bank, borrowing the remaining $8 million from BHP Billiton, the former
owners. That $12.25 million is a far cry from the ludicrous $50 million
asking price from last year.

After all these years the mining industry has been shown to be a fly-by-night
operation that will grab what it can, as cheaply as it can, and run
before the bill for the sulfuric-acid and sodium-cyanide pollution comes
due.

Thousands and thousands of hunters, fishers, sports people, boaters,
residents, business owners and environmentalists, all level-headed people,
recognized the stench of a scam. In spite of the probable millions of
dollars the mining companies have spent to grease the legislative skids
in towns, counties and Madison to allow a mine, time after time they
have failed to convince residents of the safety of any new mining operation.

They have convinced only those who will profit.

The warning siren has sounded for those businesses in the sleepy Wolf
River hamlets that rely on a sparkling clean river for their livelihood.

The Republican plan to trash the Stewardship Fund is a direct assault
on Democratic Party notions to buy the mine property. Even if the land
were sold, state and federal officials say 75 percent of the money would
have to be returned to the federal government.

Dean Kaufert, R-Neenah, wants to sell the land anyhow because it's
not "pristine forests." Kaufert thinks only forested land has value.
Perhaps it's time for some remedial reading on environment and economics.

State Sen. Robert Welch, R-Red Granite, chided state Sen. Gwendolynne
Moore, D-Milwaukee, who protested the plan to sell recreational lands
owned by the state. Said Welch, "I'm insulted you think the only people
who want to buy land are developers. That's goofy."

What Welch should have said was, "I'm embarrassed about my transparent
connections to the land developers and others who'll make a mint on
these land sales!"

Since 1995, Welch has collected almost $107,000 in "campaign donations"
from the broad spectrum of businesses that would profit from the sale
and development of pristine land. The list includes developers, lending
organizations, road and residential construction firms, energy providers,
transportation services, manufacturers of building products, the insurance
industry and more. This does not include what he has collected in soft
money from the Republican Party.

It's easy to see what's goofy at the Welch office.

Andersen is a lifelong resident of the Green Bay area and a Navy veteran.
He owns a small business and is an adjunct instructor at NWTC. He is
vice president of the Clean Water Action Council. His column runs Wednesdays.
Contact him via e-mail at curtandersen@milwpc.com